Singapore legislation
Regulation 2
Regulation 2
Definitions
Subregulation 1
In these Regulations —
Definition
“bona fide entity” means an entity that is not a non-bona fide entity;
Definition
“designated investments” and “specified income” have the same meanings as in the Income Tax (Exemption of Income of Prescribed Persons Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 6/2010), with references to “prescribed person” therein modified to refer to “approved company”;
Definition
“designated person” has the same meaning as in the Income Tax (Exemption of Income of Prescribed Persons Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010;
Definition
“prescribed percentage”, in relation to an approved company, means —
where the approved company has less than 10 relevant owners, 30%; or
where the approved company has at least 10 relevant owners, 50%;
Definition
“Singapore person”, in relation to an approved company, means a person who is a Singapore citizen, resident in Singapore or permanent establishment in Singapore, but does not include —
a designated person; (b)another approved company under section 13O of the Act and which, at all times during the basis period for the year of assessment for which the income of the approved company is exempt from tax under section 13O of the Act —
beneficially owns directly, 100% of the value of issued securities of the approved company; and
satisfies the conditions in regulation 3(2); or
an approved person under section 13U of the Act and which, at all times during the basis period for the year of assessment for which the income of the approved company is exempt from tax under section 13O of the Act —
beneficially owns directly 100% of the value of issued securities of the approved company; and
satisfies the conditions in regulation 3(2) of the Income Tax (Exemption of Income Arising from Funds Managed by Fund Manager in Singapore) Regulations 2010 (G.N. No. S 414/2010).
Subregulation 2
For the purposes of section 13O of the Act and these Regulations, issued securities include —
any right under a contract for differences, or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations, in —
the value or price of issued debentures, stocks or shares;
the value or price of any group of any such debentures, stocks or shares; or
an index of any such debentures, stocks or shares; and
derivatives of a buy-sell nature for funding purpose,but does not include —
futures contracts which are traded on a futures market;
bills of exchange;
promissory notes; or
certificates of deposit issued by a bank or finance company.
Subregulation 3
Any reference in section 13O of the Act and these Regulations to the value of issued securities of a company of the type described in paragraph (2), where the relevant day is before 1 April 2014, is a reference to the value of those securities —
at the time of their issue by the company; or
in the case of derivatives of a buy-sell nature, at the time of their buy-sell transaction.
Subregulation 4
Any reference in these Regulations to the value of issued securities of a company of the type described in paragraph (2), where the relevant day is on or after 1 April 2014, is a reference to the net asset value of those securities on the relevant day.
Subregulation 5
In paragraphs (3) and (4) but subject to paragraph (6), “relevant day”, in relation to a company, is the last day of the basis period of the company for the year of assessment in question.
Subregulation 6
Where the period of approval of an approved company ends before the last day of its basis period for the year of assessment in question, the “relevant day” is the last day of that period of approval.
Subregulation 7
In these Regulations, a reference to a basis period for a year of assessment, in relation to an approved company, is to the part of the basis period that is within the period of approval of the company, if the period of approval begins or ends during the basis period.